On taxes and obligations

In Argentina, at the national level, there are two main taxes levied on wealth. These are the
Personal Property Tax and the Profit Tax. We will briefly explain what each of them are and then
we will show that our family is below the minimum amounts required for their payment.

What is the Personal Property Tax?

It is a tax levied on the assets, located in the country and, as the case may be, abroad, that you own in
your patrimony as of December 31 of each year.
This tax establishes, in relation to the total valuation of your assets for each fiscal period, a minimum
amount from which the tax will be applied. If the total valuation of your assets exceeds this amount, you
must register for the tax and file a sworn statement where you will determine the tax to be paid.
Such amount to be paid will arise from the application of an aliquot to the amount of the valuation of
your assets that exceeds the minimum applicable amount mentioned above.
- Tax period 2020: $ 2.000.000
- Tax period 2021: $ 6.000.000
Real estate intended for home-occupation: it will not be subject to the tax when its valuation is equal to
or less than $ 30,000,000.1
Which assets are covered by the tax?
- Real estate located in the country and abroad.
- Rights in rem constituted on property located in the country and abroad.
- Ships and aircrafts of national and foreign registration.
- Motor vehicles patented or registered in the country and abroad.
- Personal property registered in the country.
- The personal property of the home or temporary residences when the home or residence is located in
the country.
- The personal property of the citizen, when he/she has his/her domicile in the country, or is in the
country.

1
Amounts are expressed in AR$. According to the exchange rate reported by the Central Bank of the Argentine Republic in
2020 and 2021, these numbers would correspond, in dollars to:
Tax period 2020: U$S 22,254.36. Tax period 2021: US$ 55,124.76.
Real estate intended for home-occupation: it will not be subject to the tax when its valuation is equal to or less than U$S
275,623.82
See: http://www.bcra.gob.ar/PublicacionesEstadisticas/Tipo_de_cambio_minorista.asp, to corroborate official U.S. dollar
rates by date.
- The other movable goods and properties that were in the country as of December 31 of each year, even
if their situation was not of a permanent nature.
- The money and the deposits in money that were in the country on December 31 of each year.
- The securities, shares, quotas or social participations and other securities representing capital stock or
equivalent, issued by public or private entities, when these were domiciled in the country or abroad.
- The assets of companies or sole proprietorships located in the country.
- Credits, when the real domicile of the debtor is located in the country.
- Scientific, literary or artistic property rights, trademarks and similar rights, patents, drawings, models
and reserved designs and other industrial or intangible property rights, as well as those derived from
them and the respective licenses, when the holder of the right or license, if any, is domiciled in the
country as of December 31 of each year.
- Movable property and livestock (capable of moving by themselves) located outside the territory of the
country.
- Deposits in banking institutions abroad.
- Negotiable securities issued by a company that borrows from the public an important capital, on a
long-term basis, dividing its debt with respect to each investor into securities of equal value, called
debentures and obligations. issued by entities or companies domiciled abroad.
- Credits whose debtors are domiciled abroad.2

It should be noted that none of the members of our family pay personal property tax, since our
belongings do not reach the minimum non-taxable amount. Therefore, we prove that we do not
have any of the assets covered by the tax in question.
The only family possession -actually, Silvana Fiel's (mother) personal property- is the house where
we live. The appraisal of the property corresponds to another government office called ARBA
(Collection Agency of the Province of Buenos Aires, for its acronym in Spanish), from whose
official website we took the information that establishes a valuation of only AR$ 1,163,982, or U$S
10,694.03, far from the non-taxable minimum.

2
Source: https://www.afip.gob.ar/gananciasYBienes/bienes-personales/conceptos-basicos/que-es.asp
3

What is profit tax?

It is a national tax levied on assets or income obtained during the calendar year. It is calculated by
applying a progressive tax rate on the net profit (income minus deductible expenses) obtained during the
fiscal period of liquidation.
In the 2020 period, single workers had to pay Income Tax if their net monthly salary exceeded AR$
55,261. Married employees with one child paid the tax from a net monthly salary of AR$ 64,145, while
married employees with two children paid the tax from AR$ 73,014.4
For 2021, the minimum amounts for the payment of this tax were updated. Thus, single workers paid
when they exceeded AR$ 74,810 in net monthly salary; workers married with one child did so from
AR$ 92,899 and those married with two children, from AR $ 98,963.5
In both cases, these scales correspond to each individual worker in the family.6
As can be seen, the current economic situation of our family is well below the indicators of the
international economy, and this is due to the general situation of our country and the devaluation
of our currency. But we are also (unfortunately) far from the internal economic capacity
indicators, not reaching the non-taxable minimum of the two most important taxes.

3
Source: https://web.arba.gov.ar/
4
Amounts expressed in dollars according to the official quotation of 2020: US$ 614, US$ 713, and US$ 812, respectively
(http://www.bcra.gob.ar/PublicacionesEstadisticas/Tipo_de_cambio_minorista.asp)
5
Amounts expressed in dollars according to the official quotation of 2021: US$ 687, US$ 853, and US$ 909, respectively
(http://www.bcra.gob.ar/PublicacionesEstadisticas/Tipo_de_cambio_minorista.asp)
6
Source: https://www.afip.gob.ar/gananciasYBienes/bienes-personales/conceptos-basicos/que-es.asp